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For Immediate Release


Pepco to Issue RFP for Wholesale Electric Power for D.C. Customers - Prebid Conference Set for August 13

For Immediate Release
July 23, 2004

Pepco today announced that it will issue a Request for Proposals (RFP) on August 6, 2004, for wholesale electric power supplies to meet its entire Standard Offer Service (SOS) obligation in the District of Columbia. Pepco will provide market-based supply service to its electric customers who do not choose to receive service from competing retail suppliers.

The RFP is being issued in accordance with the Public Service Commission of the District of Columbia ("the Commission") Orders No. 13115, No. 13118, No. 13225 and No. 13246 in Formal Case No. 1017.

The RFP is structured as a multi-phase bidding process scheduled to begin in September and conclude in November for supply service contracts to begin in February 2005. Pepco is requesting proposals to supply a total of approximately 1,425 megawatts (MW). Peak load contributions by customer class include approximately 460 MW for residential customers, 61 MW for small commercial customers and 903 MW for large commercial customers.

Pursuant to Commission Order No. 13246, a prebid conference for prospective bidders will be held on Aug. 13 at Pepco's headquarters in Washington, D.C. At the conference, Pepco's RFP managers will review the RFP structure and process, the bid plan and the power supply contract that will be awarded to winning bidders.

Since some matters in Formal Case No. 1017 are still pending, details of the procurement process, including the schedule, are subject to change.

Additional details regarding the RFPs or the prebid conference can be found by visiting the RFP Web site: The Web site will go live on August 6. Contact information also is available on the Pepco Web site.

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About Pepco: Pepco, a subsidiary of Pepco Holdings, Inc. (NYSE: POM), delivers electricity to 725,000 customers in the District of Columbia and suburban Montgomery and Prince George's counties in Maryland.

Point of Contact:
Debbi Jarvis

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